Ulta Magnificence reported double-digit gross sales development in its third quarter of fiscal 2025, pushed by increased comparable gross sales, new retailer openings and the acquisition of British magnificence retailer House NK, in line with outcomes launched December 4. The retailer additionally raised its full-year monetary outlook because it heads into the height vacation promoting interval.
The outcomes come as cosmetics and private care producers and suppliers proceed to observe U.S. specialty retail efficiency for alerts on class demand.
Q3 gross sales development
Web gross sales for the third quarter of fiscal 2025 elevated 12.9% to $2.9 billion, in comparison with $2.5 billion within the prior-year quarter. Comparable gross sales rose 6.3% versus 0.6% a 12 months earlier, pushed by a rise in common buy quantity and frequency.
“Our third quarter outcomes exceeded our expectations, reflecting the regular progress and momentum our crew is constructing as we execute our Ulta Magnificence Unleashed Technique,” mentioned Kecia Steelman, president and CEO of Ulta Magnificence, in a press assertion.
The technique contains launching new product choices, bettering in-store and digital retail experiences, and experimenting with completely different advertising efforts, which “drove sturdy gross sales outcomes, market share positive aspects and development throughout all classes and channels, with notable power in ecommerce,” she mentioned.
Of notice, Ulta’s promoting, basic and administrative (SG&A) bills elevated 23.3% to $840.9 million. Executives within the earnings name famous this improve was largely pushed by increased incentive compensation, retailer payroll and advantages, retailer bills and amortization of cloud-based software program investments.
“We leveraged our promoting on account of increased topline income, and so far as the expansion of retailer payroll expense, its primarily attributable to further promoting hours to assist the visitor expertise,” mentioned Chris Lialios, interim chief monetary officer throughout the name.
Merchandising technique factors to fiscal 2026 assortment pipeline
Steelman additionally offered perception into Ulta Magnificence’s forward-looking merchandising technique throughout the firm’s earnings name, outlining early planning for the subsequent fiscal 12 months.
“Our merchandising imaginative and prescient is to essentially curate and encourage company with the perfect magnificence and wellness assortment for all life phases,” Steelman mentioned throughout the name.
“Our retailers have been arduous at work in creating their plans for fiscal 2026, we’ve an thrilling pipeline of newness…and its balanced throughout the portfolio similar to how this 12 months was,” she mentioned. “Backside line, I really feel actually nice about what I’m seeing for 2026.”
She additionally addressed longer-term development expectations as the corporate updates its near-term outlook.
“It is a nice place to be in as a result of we’re outperforming what the unique plan was, and whereas our steerage for 2025 now’s between 12.3 and 12.4% as we’re taking a look at 2026 we’re targeted on constructing a plan that basically positions us to ship in opposition to our long-term targets,” she defined.
Retailer footprint enlargement
Ulta Magnificence opened 28 new shops throughout the third quarter and reworked 15 shops, whereas closing one location. For the primary 9 months of the fiscal 12 months, the retailer opened 58 new shops, relocated 4 shops, reworked 24 places and closed three.
On the finish of the third quarter, the corporate operated 1,500 Ulta Magnificence shops totaling 15.6 million sq. toes throughout the US, excluding the 84 shops within the U.Okay. and Eire operated by House NK.
Ulta raises full-year fiscal 2025 steerage
The corporate elevated its fiscal 2025 outlook following the third quarter efficiency. Up to date steerage now calls for about $12.3 billion in internet gross sales, in comparison with the prior vary of $12.0 billion to $12.1 billion. Comparable gross sales at the moment are projected to develop between 4.4% and 4.7%, up from the prior vary of two.5% to three.5%.
